Question: Comparative financial statement data for Sarasota Corp. and Bridgeport Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Sarasota

Comparative financial statement data for Sarasota Corp. and Bridgeport Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017.

Sarasota Corp. Bridgeport Corp.
2017 2017
Net sales $1,836,000 $632,400
Cost of goods sold 1,198,500 346,800
Operating expenses 288,660 99,960
Interest expense 9,180 3,876
Income tax expense 86,700 36,720
Current assets 407,200 190,336
Plant assets (net) 542,640 142,523
Current liabilities 67,652 34,390
Long-term liabilities 110,670 41,498
Net cash provided by operating activities 140,760 36,720
Capital expenditures 91,800 20,400
Dividends paid on common stock 36,720 15,300
Weighted-average number of shares outstanding 80,000 50,000

(a) Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.)

Net Income Earnings per share
Sarasota Corp. $

Comparative financial statement data for Sarasota Corp. and Bridgeport Corp., two competitors,

$

appear below. All balance sheet data are as of December 31, 2017.

Bridgeport Corp. $

Sarasota Corp. Bridgeport Corp. 2017 2017 Net sales $1,836,000 $632,400 Cost of

$

goods sold 1,198,500 346,800 Operating expenses 288,660 99,960 Interest expense 9,180 3,876

(b) Compute working capital and the current ratios for each company for 2017. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.)

Working Capital Current Ratios
Sarasota Corp. $

Income tax expense 86,700 36,720 Current assets 407,200 190,336 Plant assets (net)

542,640 142,523 Current liabilities 67,652 34,390 Long-term liabilities 110,670 41,498 Net cash

:1
Bridgeport Corp. $

provided by operating activities 140,760 36,720 Capital expenditures 91,800 20,400 Dividends paid

on common stock 36,720 15,300 Weighted-average number of shares outstanding 80,000 50,000

:1

(c) Compute the debt to assets ratio and the free cash flow for each company for 2017. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Debt to Assets Free Cash Flow
Sarasota Corp.

(a) Compute the net income and earnings per share for each company

%
$

for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.)

Bridgeport Corp.

Net Income Earnings per share Sarasota Corp. $ $ Bridgeport Corp. $

%
$

$ (b) Compute working capital and the current ratios for each company

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